U.S. equity markets ended the week down. The NASDAQ Composite lost 2.55%, the S&P 500 was down 1.03%, and the Dow Jones Industrial Average recorded a weekly loss of 0.19%. Four of the 11 S&P industrial sectors were positive last week. The best-performing sectors were Utilities (0.99%) and Consumer Staples (0.99%). The Quantified Funds ended the week with negative performance: The Quantified Managed Income Fund (QBDSX) finished down 0.32%, the Quantified Alternative Investment Fund (QALTX) was down 1.23%, the Quantified All-Cap Equity Fund (QACFX) closed the week down 2.08%, the Quantified Market Leaders Fund (QMLFX) recorded a weekly loss of 2.84%, and the Quantified STF Fund (QSTFX) finished the week down 5.76%. The Quantified STF Fund (QSTFX) is up 8.90% for the year despite last week’s loss, which was due to its 2X exposure to the NASDAQ 100 (NDX).
Last week the Quantified All-Cap Equity Fund (QACFX) changed its weightings in four leading stock baskets, which were around 56% of the portfolio’s composition: “All Cap–All Season” (17.77%), “All Cap–Cash Flow” (14.41%), “All Cap–Upside” (12.70%), and “All Cap–Synergy” (11.01%). Among domestic sector distributions, Health Care and Technology led with portfolio allocations of 21% and 18%, respectively. The largest stock holding in the All-Cap portfolio was Five Below Inc. (MG, 3.66%). The largest ETF holding was the Ultra S&P 500 ProShares ETF (SSO, 8.97%).
The cash level within the All-Cap Fund remained at 5% last week. The Fund’s daily trading of S&P 500 futures started the week 5.5% long, changed to 5.3% long on Tuesday’s close, and then changed to 4.7% long on Wednesday’s close to begin this week. The Fund’s daily trading of NASDAQ 100 Index futures started the week 6.0% long, scaled down to 5.4% long on Wednesday’s close, dropped to 4.2% long on Thursday’s close, and then changed to 3.6% long on Friday’s close to begin this week.
The Market Environment Indicator (MEI) remained bullish last week. On Friday, equity asset-class allocations in the Quantified Market Leaders Fund remained at the following: Small-Cap Growth (30.26%), Small-Cap Value (22.70%), Large-Cap Growth (15.14%), and Mid-Cap Growth (7.56%). Total sector ETF weightings remained at 78.00%. The individual ETF positions with the leading portfolio weightings were the iShares Russell 2000 Growth ETF (IWO, 31.20%) and the iShares Russell 1000 Growth ETF (IWF, 23.40%). Cash remained at 21.10%.
Within the Quantified Alternative Investment Fund (QALTX), the Long/Short Market Neutral Alternative subportfolio made no major changes last week. There were a few changes among the largest ETF positions: Allocation to the First Trust Utilities AlphaDEX ETF (FXU, 4.00%) increased, while allocation to the iShares DJ US Pharma ETF (IHE, 1.75%) decreased.
The cash level within the Alternative Fund decreased to 8.70% last week. The daily trading of S&P 500 Index futures with 10% fund capital allocation remained neutral for the week. The 7.5% capital allocation of the volatility-based systematic trading of NASDAQ 100 Index futures started the week 10.0% long, scaled down to 9.0% long on Wednesday’s close, dropped to 7.0% long on Thursday’s close, and then ended at 6.0% long on Friday’s close to begin this week.
The Self-adjusting Trend Following strategy’s signal exposure in the NASDAQ 100 Index (NDX) remained at 2X this week. Last week, the Fund (QSTFX) lost 5.76%, compared to a loss of 2.93% for the NASDAQ 100 Index (NDX) and a loss of 2.94% for the Rydex Series NASDAQ 100 Fund (RYHOX), a current potential holding of the STF strategy.
The Quantified Managed Income Fund’s (QBDSX) two leading broad-bond index ETF holdings are the Pimco 0-5 Year High Yield Corporate Bond Index ETF (HYS, 12.38%) and the SPDR Barclays Capital High Yield Bond Index ETF (JNK, 9.00%). Performance for the funds was negative for the week, down 0.29% and 0.19%, respectively. Cash stayed at 2.00%.
The 10-year U.S. Treasury yield ended the week up, closing at 2.94%. The 12% active portfolio exposure to 30-year U.S. Treasury bond futures in the Fund started the week 1.5% short, changed to 2.8% short on Wednesday’s close, scaled up to 3.2% long on Thursday’s close, and then dropped to 1.5% short on Friday’s close to begin this week. The position lost approximately 0.19%.
|Fund (Inception)||Symbol||Qtr Ending (9/30/19)||YTD Ending (9/30/19)||1 Year Ending (9/30/19)||3 Year Ending* (9/30/19)||5 Year Ending* (9/30/19)||Since* Inception Ending (9/30/19)||Annual Expense Ratio|
|The Gold Bullion Strategy Fund (7/5/13)||QGLDX||3.99%||14.18%||23.30%||1.68%||2.12%||1.10%||1.48%|
|Quantified Managed Income Fund (8/9/13)||QBDSX||1.85%||9.48%||7.14%||3.38%||2.66%||2.48%||1.78%|
|Quantified All-Cap Equity Fund (8/9/13)||QACFX||(0.44%)||2.73%||(15.11%)||4.68%||4.02%||3.26%||1.55%|
|Quantified Market Leaders Fund (8/9/13)||QMLFX||(2.13%)||9.81%||(13.77%)||6.48%||4.90%||4.88%||1.76%|
|Quantified Alternative Investment Fund (8/9/13)||QALTX||0.74%||4.37%||(1.48%)||2.26%||0.77%||2.08%||2.07%|
|Quantified STF Fund (11/13/15)||QSTFX||(4.73%)||(2.48%)||(20.65%)||12.52%||N/A||6.67%||1.71%|
* Performance for periods of greater than one year are annualized.
As of the most recent prospectus, the expense ratios for the Gold Bullion Strategy Fund are as follows: Investors’ Class (No Load), 1.54%; Class A, 1.54%; Class C, 2.14%. The maximum sales charge imposed on Class A share purchases (as percentage of offering price) is 5.75%. An additional 2% redemption fee applies to all share classes, including Investors’ Class, when shares are redeemed within 7 days of purchase.
The performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate and an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. To obtain performance data current to the most recent month-end please call 1-855-647-8268.
Risks associated with the Quantified Funds include active frequent trading risk, aggressive investment techniques, small and mid-cap companies risk, counter party risk, depository receipt risk, derivatives risk, equity securities risk, foreign securities risk, holding cash risk, limited history of operations risk, lower quality debt securities risk, convertible bond risk, non-diversification risk, investing in other investment companies (including ETFs) risk, shorting risk, asset backed securities risk, commodity risk, credit risk, interest risk, prepayment risk, mortgage backed securities risk, hedging and leverage risk, preferred stock risk, and MLP and REIT risks. For detailed information relating to these risks, please see prospectus.
The principal risks of investing in The Gold Bullion Strategy Fund are Risks of the Sub-adviser’s Investment Strategy, Risks of Aggressive Investment Techniques, High Portfolio Turnover, Risk of Investing in Derivatives, Risks of Investing in ETFs, Risks of Investing in Other Investment Companies, Leverage Risk, Taxation Risk, Concentration Risk, Gold Risk, Wholly-owned Corporation Risk, Risk of Non-Diversification and interest rate risk. “Gold Risk” includes volatility, price fluctuations over short periods, risks associated with global monetary, economic, social and political conditions and developments, currency devaluation and revaluation and restrictions, trading and transactional restrictions.
An investor should consider the investment objectives, risks, charges and expenses of each Quantified Fund and The Gold Bullion Strategy Fund before investing. This and other information can be found in the Funds’ prospectus, which can be obtained by calling 1-855-647-8268. The prospectus should be read carefully prior to investing in The Quantified Funds or The Gold Bullion Strategy Fund.
There is no guarantee that any of the Quantified Funds or The Gold Bullion Strategy Fund will achieve their investment objectives.
Flexible Plan Investments, Ltd., serves as investment sub-adviser to The Gold Bullion Strategy and Quantified Funds. Advisers Preferred, LLC serves as the Funds’ investment adviser.